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Positive News from Rockwell Collins

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We at Supply Chain Matters have been somewhat remiss in continuing to feature more commentary relative to positive news coming out of supply chain networks.

In that light, its was great to read a recent Wall Street Journal article (paid subscription may be required) noting that after previously cutting its workforce by 8 percent, aerospace technology provider Rockwell Collins plans to expand by 4 percent this year.  In the article, the Chairmen and CEO of Rockwell noted that his company plans to hire 800 staff this year because many of its aerospace customers including Airbus, Boeing and Bombardier are preparing to ramp-up production of existing aircraft orders.

What is also rather interesting is the characterization of current discussions with supporting the chronically late Boeing 787 Dreamliner build program, which is described as “rate-readiness”, meaning can the supplier support an accelerated build program.

Rockwell Collins is also a supplier to China’s Commercial Aircraft Corporation which is building the future C919 passenger aircraft, a potential competitor to the Boeing 737 and Airbus A320.

It seems to us that Rockwell Collins has placed itself in the catbird seat of aerospace suppliers.

Bob Ferrari


The Supply Chain “Digital Natives” Have Already Revolted

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The following commentary can also be viewed and commented upon on the Supply Chain Expert Community web site.

This morning, I happened to be reading the latest commentary published on the Gartner’s First Thing Monday newsletter, “The “Digital Natives’ Are Restless: The Pending Revolt Against the IT Nanny State.”  (Free user signup required)  This commentary, penned by Jim Shepherd, essentially concludes that the balance of power regarding IT application decisions is rapidly shifting to the business user.  Shepherd notes: “Gartner has seen a steady increase in the percentage of IT spending that’s directly funded by user departments, rather than the corporate IT budget.” Readers should take somewhat special notice to this Gartner commentary, which was written in the tone of the recent social upheaval occurring across certain countries in the Middle East

Many in our supply chain management community would view this type of statement as not especially news, since supply chains teams have not been shy during these past months in assuming responsibility and control for certain IT application investments.  I argue that this trend in more business and functional driven investment actually began in supply chain circles.

Yes Gartner, “The Times, They Are A- Changin”, and supply chain functional teams have been leading the way for some time now.

We at Supply Chain Matters actually cited these Bob Dylan song lyrics in December when outlining Prediction Eight of our Supply Chain Matters Top Ten Predictions for Global Supply Chains in 2011. It was noted in the context of past vs. current thinking in healthcare related supply chains, and how quickly healthcare related supply chain teams have been taking more ownership for addressing required process and information needs.

We are all acutely aware that supply chains and their functional teams have been under enormous pressure these past few years.  Continued cost pressures, uncertain and rapidly shifting markets, and a more demanding customer requires higher levels of business intelligence, faster response and quicker decision-making in many supply chain process areas.

The revolt has already occurred and supply chain teams are indeed assuming more influence and accountability for selecting and implementing required IT applications. The fact that Gartner has acknowledged the revolt should embolden those business teams who have not taken on such leadership thus far to get cracking and join those who already have.

Bob Ferrari